Over 500 containers carrying essentials stuck in port as authorities combat illegal fund transfers

By Shiran Ranasinghe

More than 500 containers carrying essential items have been stuck in the Colombo Port since the banning of open accounts in May to reduce illegal underground Undiyal and Havala payments for imports.Essential Food Importers and Traders Association (EFITA) Spokesperson Nihal Seneviratne said that Trade Minister Nalin Fernando told them that the government might relax the ban for some food imports.

“They were to issue a gazette on this on 20 June. However, nothing has happened. Right now, we are even importing rice. The government must encourage exports and earn some dollars,” he said.

Seneviratne said that it was extremely difficult to limit the import of consumer items like sugar, potatoes, coriander, dhal, big onions, fennel, cumin, salmon and sprats.

“It’s difficult to make people cultivate small plots of land. It’s usually not worth the effort. We need to promote farming but we have to also realise that if we stop the import of essential commodities, market prices will double or triple,” he said.

Earlier this month, the Trade Minister said they were planning to relax restrictions on food imports and having discussions with the Central Bank to obtain release of containers stuck in the port.

The Minister told Parliament that he had held a discussion with the Central Bank Governor on releasing essential food items that were brought in before the gazette banning open accounts was passed.

He said that he was planning to use 180 million dollars from the Indian credit line for releasing essential items.Open account imports allow food to be cleared on suppliers’ credit which can be settled later through official or unofficial means.